What is the problem with Argentina?

Eight of every ten pesos of the profits of the main companies during the beginning of the Government of Macri concentrated in two sectors: petroleum and banking. Everything is explained by a measure, such as the devaluation of the currency, which made the sectors with assets in foreign currency were the big winners. This was revealed by a report of the Institute of Thought and Public Policy, coordinated by Claudio Lozano and Tomás Raffo. If the comparison is made on the basis of the level of gross sales, Petroleum and the financial sector concentrate two-thirds of them, followed by the steel sector with 13.4%. All this, in a year in which the peers were below 40% inflation (according to the statistical agency of the City and the CGT). The financial sector is one of those that remained at the center of the conflict at the beginning of this year, since the joint venture with the guild led by Sergio Palazzo was not accepted by foreign banks. The agreement implied a 24% increase for this 2017.

The explanation that the economists find is in the devaluation of the end of 2015, when the (official) exchange rate rose from 9.8 pesos per dollar to 14. So it was emphasized: "The data of the balance sheets showed that for the first quarter Of 2016, the item Currency Difference was the main generator of income, both in absolute and relative terms, and even in sectors where profits were adversely affected by the devaluation.We go further, if we discount the benefits obtained by this item, Profits in these companies would have been even worse. "

The report, titled "Winners of Argentina de Macri", relieved the balance sheets of 54 companies listed on the Buenos Aires Stock Exchange. Of these, he also highlighted 10 firms that occupy the top ten of the magazine Mercado, both in 2001 and 2014, to account for what they call the "stable dome" of the business sector.